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> To expect Airbnb research hotel laws and taxes in every country they operate in seems like an undue burden. A burden? More like a flagrant abuse of the law.

by yapcguy 13y ago

> To expect Airbnb research hotel laws and taxes in every country they operate in seems like an undue burden. A burden? More like a flagrant abuse of the law. It's hard to believe that Airbnb didn't bother researching the law in San Francisco, the very same city the company was founded in.

wpietri 13y ago
I'm sure they researched it. And I'm sure it was a minefield. Existing laws will be written with hotels in mind. If J. Random Startup went to the city and said, "Hey, we want to try this new thing," at best they'd get ignored. At worst they'd be told they'd have to register each place as a hotel, set up inspections, get necessary permits, and generally slit their own throats. So strategically, the thing to do is to just ignore the laws, find sufficient technicalities and fig leafs to rebuff government on their first approach, and start the service. If it goes nowhere, then no harm is done. And if, as with Airbnb, it takes off, they're in a much better negotiating position. Now everybody knows what the service is, and it's easy to see that different laws and regulations will be needed. And regulators can't kill the market off without making a lot of people mad. And the city will end up happy: more capacity to absorb large tourist flows, better experiences for the kinds of visitors that would rather stay in a home than a hotel, more money in the pockets of local citizens. And, of course, soon there will be more tax revenue, too.
- Avitas 13y ago
  It goes even deeper than local ordinances and taxation. Counties often have specific requirements and certifications. Many states and local governments have mandatory 'use tax' and other usury laws that require registration and reporting--regardless of incorporation status or total dollar amounts. Counties, townships, cities, subdivisions and condominiums often have provisions, restrictions and covenants that specifically address and/or expressly prohibit various aspects of subletting such as short-term rentals. Further, many mortgages prohibit renting. Lastly, there's the issue of homeowners insurance. I know that there is language in the AirBnB terms that mandate the owner take care of compliance. I wonder what proportion of homeowners that rent through AirBnB (or similar sites like VBRO) are doing so in full compliance with all of the above.
briandear 13y ago
Do you even know the definition of a hotel?

by yapcguy 13y ago

wpietri 13y ago

I'm sure they researched it. And I'm sure it was a minefield. Existing laws will be written with hotels in mind. If J. Random Startup went to the city and said, "Hey, we want to try this new thing," at best they'd get ignored. At worst they'd be told they'd have to register each place as a hotel, set up inspections, get necessary permits, and generally slit their own throats. So strategically, the thing to do is to just ignore the laws, find sufficient technicalities and fig leafs to rebuff government on their first approach, and start the service. If it goes nowhere, then no harm is done. And if, as with Airbnb, it takes off, they're in a much better negotiating position. Now everybody knows what the service is, and it's easy to see that different laws and regulations will be needed. And regulators can't kill the market off without making a lot of people mad. And the city will end up happy: more capacity to absorb large tourist flows, better experiences for the kinds of visitors that would rather stay in a home than a hotel, more money in the pockets of local citizens. And, of course, soon there will be more tax revenue, too.

Avitas 13y ago
It goes even deeper than local ordinances and taxation. Counties often have specific requirements and certifications. Many states and local governments have mandatory 'use tax' and other usury laws that require registration and reporting--regardless of incorporation status or total dollar amounts. Counties, townships, cities, subdivisions and condominiums often have provisions, restrictions and covenants that specifically address and/or expressly prohibit various aspects of subletting such as short-term rentals. Further, many mortgages prohibit renting. Lastly, there's the issue of homeowners insurance. I know that there is language in the AirBnB terms that mandate the owner take care of compliance. I wonder what proportion of homeowners that rent through AirBnB (or similar sites like VBRO) are doing so in full compliance with all of the above.

briandear 13y ago

Do you even know the definition of a hotel?